Sticky Sam Buys a Piece of Equipment for $61,400 That

Sticky Sam buys a piece of equipment for $61,400 that has a useful life of 4 years. The equipment will generate operating cash flows of $18,550 per year and will have no salvage value at the end of its expected life. The income tax rate is 30%. Straight-line depreciation is used. What is the net present value using a 6% required rate of return?

A) $44,994
B) $64,278
C) $2,878
D) ($449)